BAKU, Azerbaijan, November 15. Iran's Minister of Roads and Urban Development, Farzaneh Sadegh, will travel to Russia within the next 1-2 weeks to finalize the contract for the construction of the Rasht-Astara railway in northern Iran under the framework of the International North-South Transport Corridor (INSTC), the minister told reporters, Trend reports.
Sadegh stated that the signing of the contract had been delayed by 1-2 weeks due to legal issues related to the agreement. Iran has sent an invitation to Russia to sign the contract, with legal matters remaining a key focus alongside implementation details.
The minister emphasized that three main issues are central to the Rasht-Astara railway construction: acquisition of the land through which the railway passes, application of financial and transit fee concessions, and provision of funding for the railway’s construction.
Regarding the first issue, Sadegh noted that trust has already been established with Russia, as the Russian side has observed Iran’s swift progress in acquiring the necessary land. Legal and regulatory aspects continue to be carefully addressed in the second issue.
“As for the third issue, it concerns the funding required for the Rasht-Astara railway construction. The total cost was initially estimated at 1.6 billion euros, with Iran expected to cover 15% of the amount. The Iranian side has repeatedly stated that it cannot provide these funds, a position that has been acknowledged and accepted by the Russian side,” she noted.
She added that the contract must fully define the scope and details of the work, which has contributed to the slight delay in finalization.
An intergovernmental agreement signed between Russia, Iran, and India on September 12, 2000, laid the foundation for the North-South Transport Corridor. In general, several countries have ratified the said agreement (Azerbaijan, Belarus, Bulgaria, India, Iran, Kazakhstan, Kyrgyzstan, Oman, Russia, Tajikistan, Türkiye, and Ukraine). The purpose of creating the corridor is to reduce the time of delivery of goods coming from India to Russia, as well as to Northern and Western Europe (the delivery time on the current route is more than six weeks; it is expected to be three weeks via “North-South”).
The Qazvin-Rasht railroad (175 km) was put into operation on March 6, 2019, to connect Azerbaijan's railroads with Iran's railway network within the corridor. The Rasht-Astara railroad is to be built on Iranian territory.
The North-South Corridor has three directions within Iran. The eastern direction is Turkmenistan and Central Asian countries; the middle direction is Russia and other countries across the Caspian Sea; and the western direction is Azerbaijan, Georgia, Russia, and Eastern European countries.
On May 17, 2023, an agreement was signed between Russia and Iran on the construction of the Rasht-Astara railroad in Gilan province in northern Iran. Nine stations will be built on the Rasht-Astara railroad line, which is about 163 kilometers long. With the completion of this railroad, the North-South international corridor will be improved, and Iran's railroad network will be integrated with the Caucasus countries, Russia, and Northern European countries. According to the agreement, the Russian side is expected to spend 1.6 billion euros for the construction of this railroad. This railroad will be built and completed within 48 months.
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